Coats Corp

question 16

Multiple Choice

Coats Corp.generates $10,000,000 in sales.Its variable costs equal 85% of sales and its fixed costs are $500,000.Therefore,the company's operating income (EBIT) equals $1,000,000.The company estimates that if its sales were to increase 10%,its net income and EPS would increase 17.5%.What is the company's interest expense?

• A)$122,482
• B)$128,929
• C)$135,714
• D)$142,857
• E)$150,000

---

Definitions:

Entrepreneurial Venture

A new business initiative undertaken by an entrepreneur, often characterized by innovation and risk-taking.

Growth Mindset

A concept referring to the belief that one's abilities and intelligence can be developed through dedication, hard work, and perseverance.

Fixed Mindset

The belief that basic qualities like intelligence or talent are fixed traits and that talent alone leads to success.

Metacognitive Awareness

An individual’s understanding and insight into their own learning processes and cognitive abilities.